What happens to the intrinsic value of a firm if we increase free cash flows and all else remains the same?

A$.$

The value of the firm increases

B$.$

The value of the firm remains the same

C$.$

The value of the firm decreases

D$.$

There is no way to tell

$2$ points

QUESTION $2$

Which of the following is NOT one of the key financial statements that public firms must make available quarterly?

A$.$

Statement of cash flows

B$.$

Statement of managerial organization

C$.$

Income statement

D$.$

Balance sheet

$2$ points

QUESTION $3$

Which of the following is true?

A$.$

We can add the data in the quarterly income statements and balance sheets to obtain the full year income statement and balance sheet

B$.$

The cash flow statement is the most critical of the financial statements but it only has to be shared in the annual report not in the quarterly filings.

C$.$

The data on the balance sheet is a snapshot in time and is in actuality constantly changing.

D$.$

The income statment gives us the information to understand of what assets the business is comprised.